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Youll need to collect sales tax in Alabama if you have nexus there. There are two ways that sellers can be tied to a state when it comes to nexus: physical or economic. Physical nexus means having enough tangible presence or activity in a state to merit paying sales tax in that state.
Know the retail price and the sales tax percentage. Divide the sales tax percentage by 100 to get a decimal. Multiply the retail price by the decimal to calculate the sales tax amount.
Sales of Exempt Items Some of the more common items which are exempt are: prescription drugs, gasoline and motor oil (kerosene and fuel oil are taxable), fertilizer/insecticides/fungicides when used for agricultural purposes, seeds for planting purposes, feed for livestock and poultry (not including prepared food for
Services in Alabama are generally not taxable. Tangible personal property is generally taxable in Alabama, with a few exceptions for items used in agriculture or industry. If you have sales tax nexus in Alabama and your products are taxable, your next step is to register for a sales tax permit.
The SSUT 8% flat tax should be collected and remitted on all sales of taxable products and services into Alabama unless one of the following is presented to the seller or the marketplace facilitator (resale certificate, Alabama exemption certificate, Alabama direct pay permit).

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The Alabama (AL) state sales tax rate is currently 4%. Depending on local municipalities, the total tax rate can be as high as 11%.
State Tax Rates Tax TypeRate TypeRateRENTAL TAXGENERAL4.000%SALES TAXAUTO2.000%SALES TAXFARM1.500%SALES TAXGENERAL \ AMUSEMENT4.000%22 more rows
Gifts, money, or other property you inherit or that was willed to you. Dividends on veterans life insurance. Life insurance proceeds received because of a persons death. Interest on obligations of the State of Alabama or any county, city, or municipality of Alabama.

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